How Do House Mortgages Work 28 Images Faq Home Equity Borrowing Basics Home Equity Loans

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Recent Posts For How Do House Mortgages Work 28 Images Faq Home Equity Borrowing Basics Home Equity Loans

Home equity loans — tapping your house for cash — are more popular than ever. With the average interest rate on variable-rate credit cards at 16.93 versus 5.57% on home equity loans or 5.90% on home equity lines of credit, they’re a great option to make some well-planned dreams come true.

A home equity loan is a type of second mortgage.Your first mortgage is the one you used to purchase the property, but you can use additional loans to borrow against the home if you've built up enough equity.Using your home to guarantee a loan comes with some risks, however.